Afexa Life Sciences Inc.
TSX : FXA

Afexa Life Sciences Inc.

August 06, 2009 11:37 ET

Afexa Announces Settlement With ASC

EDMONTON, ALBERTA--(Marketwire - Aug. 6, 2009) - Afexa Life Sciences Inc. ("Afexa" or the "Company") (TSX:FXA) today announced that it has reached a settlement agreement with the Alberta Securities Commission ("ASC") in respect of an investigation of the Company and certain of its present and former officers and directors.

The investigation related to specific accounting and associated disclosure matters arising in connection with the restatement of the Company's audited financial statements for the fiscal year ended September 30, 2006 and the unaudited first quarter of fiscal 2007.

"This settlement resolves all issues with the ASC involving these matters, and we are pleased that these matters have been brought to a close with them. With these historical issues behind us, we are better positioned to focus on the execution of our strategic business plan", said Afexa's Executive Chairman Jack Moffatt.

Pursuant to the terms of the settlement agreement, Afexa will pay $400,000 in settlement, plus $40,000 towards investigation costs, to the ASC to fully settle the matter. Jacqueline Shan, Afexa's President and Chief Scientific Officer and a director of Afexa, remains as Chief Scientific Officer, but will step down as the President and a director of Afexa effective immediately. Dr. Shan will also pay $100,000 in settlement, plus $25,000 towards investigation costs, to the ASC, and has agreed not to serve as a director or officer of any reporting issuer (other than her role as Chief Scientific Officer of Afexa) for a period of five years. Harry Buddle, Kit Chan and Hunter Wight, former directors of Afexa, will each pay $20,000 in settlement, plus $5,000 towards investigation costs. Gordon Brown, former Chief Financial Officer of Afexa, will pay $80,000 in settlement, plus $20,000 towards investigation costs, and has agreed not to serve as a director or officer of any reporting issuer for a period of four years.

Although not a consequence of or required under the settlement agreement, Ms. Chan and Mr. Wight have resigned from the Board of Directors of Afexa effective August 4, 2009.

The Company will not be commenting further on this matter. The settlement agreement is available on the ASC's website at www.albertasecurities.com.

ABOUT AFEXA LIFE SCIENCES INC.

Afexa Life Sciences Inc., founded in 1992, strives to transform people's lives to be healthier and happier by focusing on prevention and recovery through the use of evidence-based naturally-derived health products. The Company's lead product COLD-FX® strengthens the immune system and is widely used as a leading over the counter remedy ("OTC") for helping to prevent and relieve cold and flu infections. On April 1, 2009, the Company changed its name from CV Technologies Inc. to Afexa Life Sciences Inc.

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